Norway’s Climate Minister backs OSV emissions reduction scheme

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Norway’s Minister of Climate and Environment Andreas Bjelland Eriksen has backed the greenhouse gas emissions reduction scheme the Norwegian government is introducing for offshore vessels, despite criticism from vessel owners

As highlighted by OSJ, the Norwegian Shipowners’ Association says the plan to reduce the greenhouse gas intensity of OSVs on the Norwegian continental shelf will increase costs and could weaken the case for new projects.

The Association has warned that the government’s proposal will weaken the competitiveness of the Norwegian offshore fleet and increases costs on the Norwegian shelf. It claims that the price tag for the new requirements could be several billion Kroner, and has uncertain climate benefits. “This is bad business policy and bad climate policy,” the Association said.

In a statement on social media about the requirement for companies on the Norwegian continental shelf to reduce greenhouse gas emissions from ships from 2029 onwards, the Minister said the plan “will help cut emissions, develop new technology and create new opportunities for the Norwegian supplier industry.”

The Minister said the new regulations are expected to result in total emission reductions of about 1.6 million tonnes of CO2 equivalents by 2040. This will be achieved “a gradual phase-in, which provides players predictability and flexibility in implementation.”

“In the period 2029-2031, greenhouse gas intensity will be reduced by 10%. The requirement will gradually be stepped up to a 40% reduction in greenhouse gas intensity in the period 2038-2040,” the Minister explained.

He claimed that “When more vessels have to use fuel with low or no emissions, it will result in a predictable demand for electric and hybrid power systems on ships and alternative fuels such as hydrogen and ammonia. In this way,” said the Minister, “we will contribute to the development and use of low- and zero-emission solutions in shipping.”

The Minister further noted that emissions from the maritime sector have increased in recent years. Shipping accounts for 8% of Norway’s emissions and more than 16% of emissions under Norway’s climate agreement with the EU, of which offshore vessels account for the largest share.

“The new requirements are yet another important contribution to speeding up the restructuring of an important industry for Norway,” Minister Eriksen concluded.